China reiterates its promise to boost bank loans to the more productive sectors of its wallowing economy and away from real estate speculation.
The China Banking Regulatory Commission said it will seek to more effectively support stable economic growth and pledged to boost lending to small businesses and affordable housing. It will also decisively enforce the government’s property curbs in the second half of this year and enhance risk management of real estate lending.
China’s two-year campaign to curb the property market has seen it raise down payments and mortgage requirements; impose property taxes for the first time in Shanghai and Beijing; increase the construction of low-cost social housing and impose home purchase restrictions in about 40 cities.
The campaign, however, seems to be faltering. Home prices rose and housing sales rebounded after some local governments loosened government restrictions, fueling rumors that policies aimed at curbing speculation may be eased to help arrest the economic slowdown.
CBRC said active progress was achieved in preventing and containing risks in real estate loans in the first half because of strict lending curbs to heavily indebted developers.
Do you know more about this story? Contact us anonymously through this link.